scholarly journals Les post-keynésiens et la monnaie endogène

2009 ◽  
Vol 58 (1-2) ◽  
pp. 191-221 ◽  
Author(s):  
Marc Lavoie
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Central Banks ◽  
Monetary Theory ◽  
Production Economy ◽  
Rate Of Growth ◽  
Endogenous Process

Abstract This paper attempts to identify the peculiar aspects of post-Keynesian monetary theory. In a modern production economy, the growth of the stock of money is an essentially endogenous process. It results from the Financial needs of firms to pay out incomes to households. It follows that monetary policy is asymmetrical: central banks cannot increase the rate of growth of the money supply, they can only restrain it. Hence, inflation is never and nowhere a monetary phenomenon.

scholarly journals Monetary Theory and Monetary Policy: Reflections on the Development over the last 150 Years

2013 ◽  
Vol 233 (3) ◽  
Author(s):  
Otmar Issing ◽  
Volker Wieland
Keyword(s):  
Monetary Policy ◽  
Financial System ◽  
Central Banks ◽  
The Political ◽  
Monetary Theory ◽  
Academic Discussion

SummaryIn this paper, we provide some reflections on the development of monetary theory and monetary policy over the last 150 years. Rather than presenting an encompassing overview, which would be overambitious, we simply concentrate on a few selected aspects that we view as milestones in the development of this subject.We also try to illustrate some of the interactions with the political and financial system, academic discussion and the views and actions of central banks.

The political economy of inflation

2021 ◽  
Vol 18 (3) ◽  
pp. 331-343
Author(s):  
Frances Coppola
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Money Supply ◽  
Central Banks ◽  
The Political ◽  
Economic Output ◽  
Political Choices ◽  
Redistributive Effects ◽  
Fiscal And Monetary Policy ◽  
Political Decisions

For the last 40 years, macroeconomics has been dominated by Milton Friedman’s view that inflation occurs when the supply of money rises more quickly than economic output – ‘too much money chasing too few goods’, as the saying goes. If inflation is always due to an imbalance of money supply and output, central banks alone determine the path of inflation, and fiscal policy merely has a redistributive function. This paper draws on historical and empirical evidence as well as recent theoretical literature to show that this view is mistaken. Monetary policy has redistributive effects, and fiscal policy affects the money supply. It is therefore impossible to separate them in practice. Both fiscal and monetary policy have inflationary consequences, and because their distributional effects are different, monetary policy cannot fully offset fiscal decisions. Fiscal and monetary policy are influenced by political decisions and are themselves political in nature. Since inflation reflects spending and saving patterns which are affected by political choices, it is fundamentally a political phenomenon.

Digital Money, Liquidity, and Monetary Policy (originally published in July 1997)

First Monday ◽  
2005 ◽  
Author(s):  
Aleksander Berentsen
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Money Supply ◽  
Banking System ◽  
Central Banks ◽  
Electronic Payment ◽  
Regulatory Policies ◽  
Digital Money ◽  
Payment Mechanisms ◽  
Retail Payments

The term digital money refers to various proposed electronic payment mechanisms designed for use by consumers to make retail payments. Digital money products have the potential to replace central bank currency, thereby affecting the money supply. This paper studies the effect of replacing central bank currency on the narrowly defined stock of money under various assumptions regarding regulatory policies and monetary operations of central banks and the reaction of the banking system.

UNCONVENTIONAL MONETARY POLICY AND A MODERN VIEW ON CASH ISSUES

2020 ◽  
Vol 5 (10) ◽  
pp. 15-21
Author(s):  
Ch. A. GOGICHAEV ◽  
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Money Supply ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Central Banks ◽  
Unconventional Monetary Policy ◽  
Abnormal Growth ◽  
Excess Reserves ◽  
Close Relationship

In the aftermath of the 2008 global financial crisis, central banks in developed countries began to resort to unconventional monetary policy measures as interest rates approached zero. Such actions have led to the expansion of the balance sheets of central banks due to the abnormal growth of excess reserves. The article discusses the misconception that such an increase in the monetary base can directly affect the volume of money supply through the action of the money multiplier mechanism and the narrow credit channel of the transmission mechanism. The opinion disputed that non-traditional measures of monetary policy, pro-vided they are adequate, lead to an increase in inflationary risks in the economy. The work focuses on the lack of a close relationship between reserves, the level of lending and the money supply, and attempts made to assess the boundaries of the monetary policy methods under consideration.

THE REQUIRED RESERVE RATIO AND ITS INFLUENCE ON MACROECONOMIC INDICATORS

2018 ◽  
Vol 7 (1) ◽  
pp. 14-22
Author(s):  
Pavlo Ilchuk ◽  
Olha Kots ◽  
Daryna Martynyuk ◽  
Viktoriya Prokopchuk
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Central Banks ◽  
The World ◽  
Macroeconomic Indicators ◽  
Policy Objectives ◽  
Reserve Ratio

The world practice of using such a tool of monetary policy as a regulation of required reserve ratio by central banks has been researched and analyzed. The influence of regulation of required reserve ratio on macroeconomic indicators has been identified. The hypothesis of the possibility of using the long-term money supply law for monetary regulation of the economy and the effectiveness of the instrument for regulating required reserve ratio for achieving the monetary policy objectives of the central banks is proved.

scholarly journals Impacts of Monetary Policy on Stability of Commercial Banks – Evidence from Vietnam

2021 ◽  
Vol 10 (4) ◽  
pp. 92-103
Author(s):  
Duc Trung Nguyen ◽  
Thi Nhu Quynh Nguyen
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Commercial Banks ◽  
Financial Stability ◽  
Full Employment ◽  
Optimal Level ◽  
Central Banks ◽  
Bank Stability ◽  
High Inflation ◽  
The Stability

Before 2009, most central banks conducted their monetary policy with the ultimate goals of promoting price stability, economic growth and full employment. However, the 2009 financial crisis demonstrated that these goals are not enough to maintain a stable financial arena. So, aside from those objectives, the objective of financial stability is also of interest to central banks when implementing monetary policy. In this study, the authors explore the influence of monetary policy on the stability of commercial banks in Vietnam – an emerging economy. The study uses the dataset of the Vietnamese commercial banks from 2008 to 2019, applying SGMM estimations and checking their robustness with a Bayesian approach. The results show that, in recent years, the SBV has effectively implemented monetary policy to ensure banks’ stability in Vietnam. In particular, money supply M2 has positively impacted the stability of commercial banks. Also, the results imply that the ratio of loan to total assets, the ratio of cost operating to income operating, as well as CPI, correlate negatively with bank stability. The study did not find any impact of bank size or GDP on bank stability during the research period. Based on these results, the SBV should manage an optimal level of money supply M2 to guarantee efficient economic operations in general and maintain bank stability in particular, and should avoid high inflation.

The Dangers of Monetary Policy in Agrarian Economies

1961 ◽  
Vol 1 (3) ◽  
pp. 59-72 ◽  
Author(s):  
Richard C. Porter
Keyword(s):  
Monetary Policy ◽  
Side Effects ◽  
Central Bank ◽  
Money Supply ◽  
Price Level ◽  
Central Banks ◽  
Government Deficits ◽  
Permissive Attitude ◽  
The Creation ◽  
Central Bankers

The central banks of underdeveloped economies are frequently ad¬monished for their apparently permissive attitude toward inflation. Where large government deficits are financed by the creation of ever-larger money balances in the economy, this criticism is quite apt. But the strictures often extend to those central banks which, in a situation where prices have already risen for reasons beyond their control,1 are reluctant to refuse the accom¬modating expansion of the money supply. With the argument that the central bank can force prices back to their previous levels merely by insisting that the money supply does not increase, central bankers and their supporters have seldom disagreed. They justify permissive after-the-fact monetary expansions on the grounds that driving the price level back down would have unfortunate side effects.2

On Practical Validity of Quantity Theory of Money, or How Much the Dogmatism of Monetary Authorities Costs

2008 ◽  
pp. 31-45 ◽  
Author(s):  
S. Glazyev
Keyword(s):  
Monetary Policy ◽  
Economic Development ◽  
Money Supply ◽  
Market Equilibrium ◽  
Static State ◽  
Quantity Theory ◽  
Monetary Authorities ◽  
State Of The Economy ◽  
Market Organization

The article critically considers basic postulates of quantity theory of money. It shows that they reflect the static state of the economy in abstract models of market equilibrium but do not prove true in actual economic processes. In contrast to monetarists’ view, prices can rise as well as fall even if other variables of the monetarist equation are stable. Thus it cannot be used for grounding monetary policy. The author comes to the conclusion on the dogmatism of Russian monetary authorities that seriously hinders the country’s economic development. He proposes to switch to market organization of money supply basing on regulation of the refinancing rate.

The Role of Different Channels in Transmitting Monetary Policy into Output and Price in Vietnam

2015 ◽  
pp. 20-40
Author(s):  
Vinh Nguyen Thi Thuy
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
Monetary Transmission ◽  
Impulse Response Functions ◽  
Short Run ◽  
The Exchange Rate ◽  
The Interest Rate ◽  
Interest Rate Channel

The paper investigates the mechanism of monetary transmission in Vietnam through different channels - namely the interest rate channel, the exchange rate channel, the asset channel and the credit channel for the period January 1995 - October 2009. This study applies VAR analysis to evaluate the monetary transmission mechanisms to output and price level. To compare the relative importance of different channels for transmitting monetary policy, the paper estimates the impulse response functions and variance decompositions of variables. The empirical results show that the changes in money supply have a significant impact on output rather than price in the short run. The impacts of money supply on price and output are stronger through the exchange rate and credit channels, but however, are weaker through the interest rate channel. The impacts of monetary policy on output and inflation may be erroneous through the equity price channel because of the lack of an established and well-functioning stock market.

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